Starboard Commercial Real Estate

Hans Hansson | July 23, 2009

In today's economic climate many businesses are facing declining sales by 20 percent or more from the time they originally signed their lease. With the prospect that sales will stay flat or continue to decline for the rest of this year and the next, businesses everywhere are trying to figure out how they can renegotiate their budgets to pay the rent. Landlords also have worries in this economic climate. Many are seeing tenants fail or come knocking on their doors for rent relief. Starboard TCN Worldwide offers a new service aimed at assisting business manage rental costs and keeping tenants in place with a lease modification service know as 'Blend and Extend'.

Starboard TCN's commercial real estate professionals set our service apart by taking the time to validate the need for a reduction. Many owners have their leases rates tied to the financing of their buildings so they have little room to work within to assist their tenants through this downturn. However, the prospect for both the tenant and the landlord is worse if the tenant's business fails and they have to vacate the building. We work to provide the necessary information to a landlord to go to their lenders or investors to support such a move.

Who is qualified for a 'Blend and Extend' lease modification? Typically you are a candidate if your firm has seen sales or revenue cut by 20 percent or more. Our real estate professionals will evaluate your business in a variety of ways. Looking at the tenant's ability to pay rent and if the business is financially strong enough to continue business through this down cycle, we will then create a matrix to present to the landlord.

Through our negotiations with the landlord we aim to lower your current rental rate for the period remaining in your lease term to an affordable rent level based on your finances. In exchange we will offer the landlord an extension of your existing term to make up the loss in rent as a result of this reduction. To fill an office or retail vacancy landlords typically have to wait three months or more before a tenant is secured and rent is collected, 'Blend and Extend' eliminates this potential period without rent income for the landlord.

If tenant improvements are required that vacancy could last considerably longer. Landlords also contribute in most cases to tenant improvements have to pay brokers attorneys architects and other service providers fees to secure the tenant etc. By extending the lease we calculate possible loss of revenue as part of our matrix that we present to the landlord on the tenant's behalf. This gives everyone the ability to learn that it is in the best interests of both the landlord and the tenant to consider seriously a lease modification.

If you are interested in this service please contact us at 415-765-6900. We would be more than happy to send one of our qualified agents to see if your firm would qualify.
Posted 10 years, 1 month ago on July 23, 2009
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Comments on this post:

Re: Starboard TCN Worldwide Announces Lease Modification Services
I appreciate and applaud renegotiating rather than defaulting. Great idea and I hope it goes well for you.

2009/08/04 by Blake Ratcliff wwwReply
Comment Trackback URL : http://blog.starboardnet.com/bblog/trackback.php/135/41014/
Re: Starboard TCN Worldwide Announces Lease Modification Services
I have known Hans for many years and he has shown me many locations for my company, he is good at what he does. He touches on an issue that I just sent in with my August rent check: If business continues the way it is Or drops I will be asking you (my landlord) for a rent reduction as winter months are tough and I signed my first least many years ago when they (landlord) could get TOP DOLLAR because of a hot market. My landlord has always been fair - will they consider this?

2009/08/06 by Drew • • Reply
Comment Trackback URL : http://blog.starboardnet.com/bblog/trackback.php/135/41036/
Re: Starboard TCN Worldwide Announces Lease Modification Services
Give me a call lets review your details.


415-517-2589

2009/08/07 by Hans Hansson wwwReply
Comment Trackback URL : http://blog.starboardnet.com/bblog/trackback.php/135/41049/

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